“The outcome of this review will be driven first and foremost by our fiduciary duty to, and the interests of, our clients.”
This is one of those interesting press releases where the most interesting stuff is what the releasing company is NOT saying.
When any company is reviewing the strategy of a whole division it is almost certain that there will be some changes.
Deutsche Bank do not say anything in today’s press release about what part of the asset management it will cut lose.
But the largest bank of Europe emphasize what it will keep:
“While the Bank remains committed to asset management, this review is part of the Bank’s continual effort to maintain an optimal business mix and be among the market leaders in each of its businesses.,” DB writes.
“All strategic options are being considered. The review covers all of the Asset Management division globally except for the DWS franchise in Germany, Europe and Asia, which the Bank has already determined is a core part of its retail offering in those markets.”
According to the bank is the strategic review of the asset management division focusing in particular on how recent regulatory changes and associated costs and changes in the competitive landscape are impacting the business and its growth prospects on a bank platform.
Kevin Parker, Global Head of Asset Management and a member of the Deutsche Bank Group Executive Committee, says in commentary:
“The outcome of this review will be driven first and foremost by our fiduciary duty to, and the interests of, our clients. Our aim is to find the best strategic option to maximize the performance and potential of the Asset Management division.”
Fiduciary duty? I had to look it up:
“A fiduciary duty is a legal or ethical relationship of confidence or trust between two or more parties. One party, for example a corporate trust company or the trust department of a bank, acts in a fiduciary capacity to one, who for example has funds entrusted to it for investment. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts,” according to Wikipedia.
“A fiduciary duty is the highest standard of care at either equity or law. A fiduciary is expected to be extremely loyal to the person to whom he owes the duty (the “principal“): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents.”
Now, who is “the principal” (or “principals”) of Deutsche Bank? I wonder…
- Deutsche Bank May Sell Asset Management Division After Recent Regulatory Changes (DB) (businessinsider.com)
- Deutsche Bank Could Transfer Financial Contagion: Simon Johnson (mb50.wordpress.com)